Arizona endowment outperforms trust funds of largest universities

The National Association of College and University Business Officers announced this week that Arizona’s Permanent Land Endowment Trust Fund outperformed the average of long-term returns of the largest university and college endowments in the country by 28 percent.

According to the National Association of College and University Business Officers  report, the $5.5 Billion Permanent Land Endowment Trust Fund’s  average 10-year return through June 30 was 7.73 percent, while the average for 104 university and college endowments with assets of $1 Billion or more was 6 percent.

“This is exceptional performance that translates into more money for our schools. Beating the top university endowments by 28 percent over 10 years is truly remarkable,” Arizona Treasurer Yee said. “Our investment team in the Arizona Treasury is among the best in the country and this report is proof.”

According to the university business officers’ figures, over the decade ending in June, the state’s trust fund outperformed prominent universities such as Harvard, Brown, Cornell, Stanford, Yale, and many more.

The trust fund’s return puts it in the 90th percentile of all ranked university and college endowments over $1 Billion.

The Treasury manages the trust fund with a 60 percent allocation to U.S. equities and 40 percent to investment grade bonds and is required by law to make monthly distributions to beneficiaries, more than 93 percent going to K-12 schools across Arizona.

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